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HEARTLAND MORTGAGE, INC... 

MORTGAGE LENDING ALERT:

NEW WEBSITE--BIG NEWS:

 

Has The “Good” Been Taken Out of Your Good Faith Estimate?

 

Dear Friends,

 I had planned to make this an email providing you with the news that our new website is live, although content is still being added, but there is bigger news that is important especially in light of the new "consumer protection" compensation laws that went into effect today for every new mortgage you obtain.  

It is essential that you be aware of how the new mortgage reform act is affecting your ability to get an accurate cost estimate.   The first thing you need to know is whether you are getting “borrower paid” quote or a “lender paid” quote.

 

Why is this essential?

 

The simple answer:  The lender paid quotes DO NOT accurately reflect how the cost of your interest rate is determined on the 2010 Good Faith Estimate form!!!

 

The difference is simple:

 

The “borrower paid” quote works like the system has always worked—we negotiate what we make with you, and then you decide if you want the closing costs absorbed in the rate or not.

 

The “lender paid” option marks up the interest rate by HOW MUCH THE LOAN OFFICER IS PAID.   Very often, these rate quotes will require higher rates, depending on what the loan officers manager or the bank decided to choose for their pay plan. 

THIS HAS NEVER BEEN A PART OF MORTGAGE LENDING PRICING BEFORE, so it is important you know whether you are getting a borrower paid or lender paid quote.

 

Making matters worse, the Good Faith Estimate most often will show you GETTING A CREDIT (money towards your costs) for the rate that has been chosen, when in fact you are being charged for the rate.

 

Hopefully this will be fixed soon, but ANY LENDER PAID RATE QUOTE will misrepresent the charge or credit for your rate on box 2, page 2 of your Good Faith Estimate.

 

Please email me or call me if you have any questions, or want to make sure you, a friend or family member is getting quoted the cost of their rate correctly!!

 

Much more to come as we continue to modify the content of our website to be a one stop mortgage education resource.

  

As always, please don’t hesitate to contact us if you need any mortgage related services…things are changing fast, but we are still here to help you.